Several weeks ago, a shopkeeper in my neighborhood closed his small business because his monthly electricity bill exceeded his entire income. He is not alone. Across Pakistan, millions of ordinary citizens are being crushed under the unbearable weight of skyrocketing electricity tariffs. The average household bill has gone to astronomical levels without any corresponding improvement in supply. The most devastating impact falls on the middle class and small business owners, the backbone of Pakistan’s economy. Factory workers are being laid off, small shops are shutting down and families are skipping meals to pay electricity bills.
The root cause is no secret. Circular debt, inefficient distribution companies, line losses and capacity payment charges to idle power plants are bleeding the national exchequer and that cost is being transferred directly onto the shoulders of the people. The government builds new power plants but cannot fix the broken system that delivers the electricity. The solution must begin with transparency and accountability. The power authorities must conduct public hearings before approving any tariff increase. Capacity payments to non-producing power plants must be renegotiated immediately. Line losses and theft must be eliminated at the utility level and not billed to honest customers.
Kashaf Eman
Lahore
